You inherit $300,000 from your parents and want to use the money to supplement your retirement
You receive the money on your 65th birthday, the day you retire. You want to withdraw equal
amounts at the end of each of the next 20 years.
What constant amount can you withdraw each
month and have nothing remaining at the end of 20 years if you are earning 7% interest
compounded monthly?
A) $2,326 B) $1,200 C) $2,943 D) $1,829
A
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Which type of investment, if any, could be classified as short- or long-term, as well as debt or equity?
A) Available-for-sale securities B) Trading securities C) Held-to-maturity securities D) None of these are correct.
Utility values typically range from -1 to +1
Indicate whether the statement is true or false
How much money do I need to place into a bank account that pays a 1.08% rate in order to have
$500 at the end of 7 years? A) $629.51 B) $463.78 C) $751.81 D) $332.54
Matthew had a $4,000 gain from the sale of his car. He
A) need not report the gain since it arose from the sale of a personal asset. B) must report the gain as a capital gain. C) must report only half the gain since capital gains enjoy favorable tax treatment. D) can defer paying taxes on the gain by buying another customized car of equal or greater value.